A pair of Central Alberta companies have distinguished themselves as being among the top performers on the TSX Venture Exchange.
IROC Energy Services Corp. (TSX-V: ISC) and Lonestar West Inc. (TSX-V: LSI) have been named to the TSX Venture 50 for 2012. IROC Energy, a diversified oilfield services company that operates under the business names Eagle Well Servicing, Aero Rental Services and Helix Coil Services, is headquartered in Red Deer, and Lonestar West, which provides hydrovac and vacuum services to drilling and other companies across Western Canada, is based in Sylvan Lake.
The TSX Venture 50 ranks the strongest performers on the TSX Venture Exchange in five sectors: mining, oil and gas, diversified industries, clean technology, and technology and life sciences. IROC Energy and Lonestar West were among the top 10 in the diversified industries category, with IROC holding down the top spot and Lonestar West number 9.
Another TSX Venture company with Central Alberta connections — CWC Well Services Corp., which was once based in Red Deer but is now headquartered in Calgary — was ranked fifth in diversified industries.
James West, president and CEO of Lonestar West, said the recognition reflects his company’s “aggressive growth model.”
The rankings were based on market capitalization growth, share price appreciation, trading volume and analyst coverage.
IROC, which has been listed since June 2009, saw its share price jump 118 per cent from Dec. 31, 2010 to Dec. 31, 2011, to $2.60 from $1.19. Its market capitalization improved more than 150 per cent during this period, to $130.4 million from $51.9 million.
Lonestar West, whose TSX Venture listing dates back to January 2009, enjoyed a 163 per cent jump in share prices between Dec. 31, 2010 and Dec. 31, 2011 — to 79 cents from 30 cents. The company’s market capitalization increased 806 per cent during this period, to $12.3 million from $1.4 million.
In November, IROC reported third quarter income from continuing operations of $4.3 million, triple the $1.1 million earned during the same three-month period ended Sept. 30, 2010. Its revenue during this period was up 63 per cent, to $22.9 million from $14 million.
On Friday, Lonestar West reported record revenues and profits for the three months ended Dec. 31 — the second quarter of the company’s 2012 fiscal year. It posted $4.5 million in revenue, up 57 per cent from $2.9 million for the same quarter in 2011; and net earnings of $522,000, up 74 per cent from $300,000 a year earlier.
In addition to improved utilization rates, a release issued by Lonestar West attributed the increases to an expanded fleet. It now consists of 33 trucks: 25 HVAC trucks (including eight lease-operated vehicles) and eight vacuum trucks.
There were 2,250 companies listed on TSX Venture Exchange as of Dec. 31, 2011. To be eligible for inclusion in the TSX Venture 50, they had to have market capitalization in excess of $5 million, and closing share prices greater than 25 cents at the end of 2011 and at least 10 cents on Dec. 31, 2010.